[Dolomite] [FINAL] [STIP - Round 1]

Thank you for the kind words! We put a lot of thought into this proposal and how we can help grow Arbitrum!

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Great questions.

  1. We think forcing users to pair $ARB will offset any temporary dumping of the price and could push users to take the “leap” to become $ARB holders. It also serves as a financial bottleneck for whales that absorb a ton of oARB and attempt to vest the oARB before smaller users get the chance to.

  2. Correct - The ARB that’s market-bought and paired wouldn’t be idle in the smart contract where it’s paired with oARB. We can make the paired ARB productive by depositing it into Dolomite which will give the farmers some extra yield

  3. The received ETH would be deposited into Dolomite for further TVL boosting and would essentially be protocol-owned liquidity (serving as a liquidity backstop). In the future we can covert the ETH to other assets that may be needed to underwrite strategies on Dolomite (like USDC). We like that there’s a lot of flexibility with this model and how the ETH can be utilized in the future.

Bonus: The smart contracts we’re writing for this will be open source and we already had 2 teams reach out to us that are interested in reusing them!

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d2.finance supports Dolomite application! well crafted ser! :saluting_face:

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Looks so nice. I have used dolomite to bridge some token before. Nice. Hopeful, to see the great things to come.

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Very excited to see a novel mechanism to incentivize liquidity and reduce dumping.

Dolomite’s team is strong and one of the most active in the space strongly focused on collaboration with a net positive value for the Arbitrum space.

support

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Support this proposal immensely. It is my view that Dolomite is one of the most innovative protocols in defi let alone on Arbitrum. The team is commited and I am saying this without any vested interest in their protocol or success, just as a power user.

Also, I really want to emphasise how innovative the incentivisation mechanism Dolomite has created here is, it will help Arbitrum by aligning the incentives of the farmers and Arbitrum itself and lower the overall selling pressure by putting tokens into the hands of those aligned with arbitrum and holding bags of the token themselves, over a longer period of time therefore dampening the effects of any potential dumping. Really cool stuff, and we have taken inspiration from this mechanism for our own STIP proposal at Umami Finance.

Fully in support here, great stuff. I hope this mechanism will become the norm for incentivising using ARB grants!

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I love what dolomite is doing, both in term of branding and in term of functionalities of their vault. They can easily keep growing and help arbitrum grow along them. Support :slight_smile:

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Huge supporter of the Dolomite model and team, bullish on the distribution plan, and excited to see where this goes. Support.

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Excited to see Dolomites continued growth on Arbitrum, the team has been building for years and I believe their novel mechanism will only gain further adoption with the use of this grant!

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Dolomite has built out a lot of innovative products on Arbitrum, I’m a fan of their team and what they can bring to Arbitrum users.

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I support this proposal. Dolomite’s plan to leverage ARB to increase TVL will be great for ARB and the growth of the Arbitrum ecosystem. Additionally, Dolomite’s focus on preserving the rights of users by removing restrictions on assets used as collateral is great for making the ecosystem more accessible to all. Dolomite is composable and supports a wide range of tokens - I think they have the potential to be a key player in the DeFi landscape. Always happy to support a proposal that empowers users while still promoting growth.

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Dolomite is the most innovative lending platform (and more :wink: ) that I have seen in Defi thus far. Not only that, as displayed by the proposal, they are focused on utilizing this ARB in a sustainable way that incentivizes STICKY liquidity. Support.

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Hello @corey thank you for your application!

Unfortunately, your proposal is not eligible for this incentives program for the following reasons.

  1. You are not distributing the ARB to incentivize contracts and are instead selling it and using profits for protocol-owned liquidity and other activities which is not allowed.
  1. The ARB is not permitted to be sold into another Asset. The intention of the program is to distribute ARB not to sell it for ETH.

I think you’re not understanding how the model works. We aren’t selling any arb.

Hello @MajinBobo0x thanks for the feedback! Can you please provide more details? From the following quote, it appears ARB will be sold for ETH

Hey Matt, I think I can help clarify things. We’re using a typical liquidity mining program to distribute an oARB (option-ARB) token first, based on users providing liquidity to Dolomite. The oARB token can be converted to ARB using the bonding program we laid out in the proposal.

The key takeaway is that there’s two layers to the program:

  1. The distribution of oARB to yield farmers
  2. The conversion of oARB to ARB in a way that aligns the yield farmer with the Arbitrum ecosystem instead of mercenary dumping

We’re open to suggestions if you think it’s problematic! We put a lot of time and thought into designing this and would prefer we work with you to fix any issues instead of being outright rejected.

Umami is using the same option/bonding program (they give us credit in their application) and their proposal was approved.

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Big fan of Dolomite, always have had a great experience with the platform & the team, and a grant will really help the product to shine. Fully support the proposal!

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Hey @corey Thanks for this clarification! Your submission now meets all requirements to be considered for a snapshot vote.

However, please note that the Funding Tranches piece of the incentives framework has been replaced by funds being streamed biweekly.

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Amazing, thank you for the reconsideration! We’re ready to accept the funding tranches in streams and are fully aware of it. Thank you again!

Firstly, thank you for your proposal and keen interest in the Arbitrum ecosystem.

Introduction and Rationale

Dolomite has proposed creating a lend/borrow hub focusing on Arbitrum native DeFi projects, with an application for a 1M ARB grant, accounting for 2% of the total program availability. The emphasis on security, user experience, and an innovative approach to steady growth aligns with Arbitrum’s values. The unique model of vesting ARB, bonding, and XP achievements not only counters mercenary capital but also bolsters active user engagement. This comprehensive and thoughtful proposal showcases Dolomite’s commitment to enhancing the Arbitrum ecosystem, and we believe in its potential effectiveness.

No Significant Concerns

We do not have major concerns regarding this proposal. Dolomite’s plan is clear, and innovative, and shows a strong commitment to engaging users actively and responsibly.

Summary

Castle Capital appreciates the efforts put forth by Dolomite and the innovative lending/borrowing hub they aim to establish within the Arbitrum ecosystem. We are in support of the proposal despite the higher-than-suggested ARB amount in the request. This mirrors our confidence in the Dolomite team and their detailed, user-centric proposal.

We hope that our feedback is received as a constructive contribution, aiding the further enhancement and success of Dolomite’s project for the widespread benefit of the Arbitrum ecosystem.

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